Is the Canadian economy headed toward recession?
Members of the media may directly contact the following experts on this topic:
Isabelle Salle (English and French)
Canada Research Chair in Macroeconomics and Associate Professor, Department of Economics, Faculty of Social Sciences.
[email protected]
Professor Salle’s research examines macroeconomic policies from a behavioral angle to understand how businesses and households react to policies. She has extensive research and policy experience in monetary policy, central bank communication and inflation dynamics.
“The US tariffs on Canadian exports will push prices up and at the same time slow down economic activity. Firms are further pausing investment and hiring decisions in a wait and see approach due to the highly uncertain developments of these tariffs. All this is happening in a context where the economy was not strong: wages have not caught up with the recent inflation surge, which erodes households' purchasing power, large private and public debt inherited from the covid area limits investment, consumption and government spending, large amounts of new comers have not integrated the labor market yet, the Canadian dollar is weak and the central bank has already embarked on a decreasing interest rate path. These factors will limit our room to counteract the potential recession.”
David Gray (English and French)
Full Professor, Department of Economics, Faculty of Social Sciences
[email protected]
Professor Gray's research interests include the fields of labor economics and labor market policy. He can contextualize the contribution and impact of U.S. tariffs and economic policies on the Canadian economy.